Dutch Bros | Knoxville MSA

Investment Highlights

NEW 15 YEAR NNN CORPORATE DUTCH BROS WITH 10% RENT INCREASES
• The subject property features a 15 year NNN corporate lease with 10% rent increases every 5 years in the initial lease term and options.
• This property is currently under construction and features a drive-thru with two access points. Rent is scheduled to commence in May 2025.
• There are 100% no landlord responsibilities.
• Tenant is responsible for all expenses including taxes, insurance, parking lot, roof, and structure.

LESS THAN 1 MILE FROM WALMART AND LOWE’S HOME IMPROVEMENT
• This Dutch Bros is located near Walmart and Lowe’s Home Improvement in the main retail corridor in Jefferson City on Hwy 11 (26,100 VPD).
• Uniquely positioned on Highway 11 (26,100 VPD), the main highway that connects Morristown to Knoxville, TN.
• Additional new development on this corridor includes a new Arby’s, Tidal Wave Auto Spa, and City Point Center.
• There are also new industrial and warehouse developments in Jefferson City that are adding 150 new jobs to the community.
• This store is less than a mile from Carson-Newman University which supports 2,585 students and 250 faculty members.

KNOXVILLE MSA | 3RD LARGEST CITY IN TN
• Jefferson City is 30 minutes northeast of downtown Knoxville and a part of the Knoxville MSA.
• Knoxville is the largest city in the East Tennessee Grand Division and the state’s third-largest city after Nashville and Memphis.
• Home to the University of Tennessee which has 36,304 students enrolled and nearly 10,000 staff members.
• The largest company based in Knoxville is the privately-held Pilot Flying J, the nation’s largest truck stop chain and sixth largest private company.
• Over 700 manufacturing establishments are scattered throughout the Knoxville area. Sea Ray Boats is the city’s largest manufacturer, employing 760 residents.
• The Knoxville area is home to 182 shopping centers and factory outlets, and over 2,400 retail establishments.

DUTCH BROS COFFEE | $1.28B COMPANY WITH 1,000 LOCATIONS
• Founded in 1992, Dutch Bros is a publicly traded (NYSE: BROS) growing drive thru coffee chain that’s dedicated to providing excellent service and quality coffee.
• The company achieved total revenues of $1.28 billion, a 32.6% increase from $965.8 million in 2023.
• In fourth quarter 2024, system same store sales increases by 6.9% from Q3 2024 and 5.3% from Q4 2023.
• In 2024, Dutch Bros opened 151 new shops across 18 states with plans to open 160 locations in 2025. This expansion brought the total number of locations to 1,000.
• Per March 2024, Costar report, Dutch Bros ranks no. 3 among US coffee and bakery Chains based on store sales.